Problem $1$

ABC exchanged its office equipment with another

entity on april $1,2023,$ in exchange for a note

receivable amounting to $2,500,000.$ the note bears

an interest of $8\%$ per annum and payable with $5$

equal annual installments. the first payment of

which starts on April $12024.$

What is the amount of interest income to be

presented in the income statement for the year

$2023$ & $2024?$

What are the current and non$-$current portion of

the carrying amount of the note receivable on

December $31,2023?$

Problem $2$

ABC Inc. provided repair services to another entity

on January $1,2021.$ In exchange for such services,

ABC Inc. received $P100,000$ cash and a

promissory note of $P600,000,$ bearing an interest

$(10\%$ and which will mature on December $31,$

The direct costs of providing the services

amount to $P220,000.$ On that date, the prevailing

rate of interest for a similar note is $12\%.$

Determine:

Q$1$: The initial measurement of notes receivable;

Q$2$: The net amount to be presented in the

statement of comprehensive income, assuming:

$($a$)$ The principal is payable at maturity while

nominal interest is payable annually.

$($b$)$ The principal is payable annually and nominal

interest is payable annually.

$($C$)$ The principal is payable annually while nominal

interest is payable at maturity.

$($d$)$ The principal is payable at maturity and

nominal interest is payable at maturity.